We get this question very frequently that why do we suggest to invest in Mutual Funds when we can easily buy few good stocks ourselves or imitate any good fund manager’s portfolio and save the Mutual Fund costs.
Answer is just one word – Time.
If you have enough time to do stock research and to know which are ‘good’ stocks, when to buy and when to sell them, if you have time then yes, you can go for direct stocks.
If you don’t have time, then Mutual Funds are best because then there is a team which is full time doing this for you. You just have to find the right team once and they will keep making money for you.
And then there are few other benefits as well –